Loading
TerryHealy(Newbie)Newbie
1 Dec 2025

Recent Auction on SH Military items, so no GST on Purchase Price, but Auction House charges a Buyers Premium, and then charges GST on this Buyers Premium / Commission. Is this Legal ?

206 views
1 replies
206 views
1 replies

All replies

JayATO(Community Support)Community Support
2 Dec 2025

Hi @TerryHealy,


Yes, auction houses can legally charge GST on buyers' premiums. When an auction house is registered for GST, they must charge GST on their taxable supplies, which includes buyers' premiums or commissions they charge for their services.


The fact that the military items themselves may not have GST applied doesn't affect the auction house's obligation to charge GST on their own services. The buyers' premium is a separate supply from the auction house to you for their auction services, and if they're registered for GST, they must include GST on this service.


This is similar to how any service provider charges GST - they can charge whatever they want for their services and GST is based on what they charge. The buyers' premium is simply the cost of the auction service they provide, and GST must be added on top if they're registered.


If you have concerns about whether the auction house should be charging GST on their services, you can contact our technical assistance team who can provide guidance specific to your situation.

Loading
Within Auctions, can the Auction House charge GST on Buyers Premium ? | ATO Community